Articles by Mike Fullerton on ArticleSnatch.com

Systematic Investment Planning through Mutual Funds

Thu, 06 Aug 2009 06:30:35 -0400

There exists a misconception with amateur investors who consider SIP to be a kind of a Mutual Fund. Technically speaking a Systematic Investment Plan is not a Mutual Fund, rather a way to invest upon it. There are a couple of ways that you can invest in a Mutual fund; one is a one time payment and the other through periodic investments. The later is termed to be Mutual Fund SIP. It is more of an investment mode rather then an investment avenue as many point out. An average investor opting for Mutual Fund Investments via Mutual Fund SIP invests in small amounts at regular intervals instead of a lump sum payment. In this case he is benefited by escaping the volatility that exists in Stock Markets by lowering the average purchase cost. Since the investment amount for each SIP installment is fixed, the investor gains by receiving a higher number of mutual fund units, assets collectively termed as Mutual Fund NAV (Net asset value). Investing through Mutual Fund SIP disciplines your investment attitude. Often lack of discipline has been citied as the major reason for failing to reach long term financial goals. **End Summary** Topics: Investment Planning]]> Financial Planning]]> Mutual Fund SIP]]>]]> About the Author: ]]> Investment Planner and Mutual Fund Manager for a leading Brokerage Firm in India. To read more about Mutual Funds in detail click here .

Wealth Management Services for Accumulated Wealth

Tue, 07 Jul 2009 00:00:00 -0400

Wealth Management can be summed up as an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services. Wealth management services are provided by independent financial advisors or large corporate entities whoâ€™s primarily goal is focused on high net worth individuals (HNWI). This activity ensures a long lasting association between the organization and the customer involved. Wealth management services complements the existing expertise of CPAâ€™s (Certified Public Accountants) and leverages the financial knowledge & information about clients' lives that they already posses. All in all it is a winner and all the bankers associated with investment banking benefit a lot through it. Wealth Advisors use their experience in estate planning, risk management, and their affiliations with tax and legal specialists, to manage the diverse holdings of high net worth clients. Banks and brokerage firms use advisory talent pools to aggregate these same services. Wealth Advisors must have sufficient information, from objective sources, regarding all products and services owned by their clients to answer inquiries regarding performance and degree of risk-at the client, portfolio and individual security levels. **End Summary** Topics: Wealth Management Services]]> Wealth Management Product]]> Wealt]]>]]> About the Author: ]]> Investment Planner and Relationship Manager for a leading Brokerage Firm in India. To read more about Wealth Management Services in detail click here .

Why do people prefer to invest in the Equity Market?

Mon, 22 Jun 2009 00:00:00 -0400

Equities (stocks) have greater risk than bonds because they represent the residual interest in a company after all other claims are paid. If a company goes bankrupt, short-term creditors such as employees and suppliers are first to be paid, followed by banks and other lenders, and only after those claims are settled is equity investors (owners) compensated. Given that there is greater risk; investors need an incentive to invest in equities. When you invest in equities the investment must focus on the most reputed sectors that have provided the maximum returns over the past few years. Proper Financial Planning is a must. A second reason to invest in equities is that they provide diversification. Even owning international equities provides a diversification benefit relative to a domestic-only equity portfolio. The benefits of diversification include higher average returns with lower average volatility. When combined with other asset classes such as bonds, real estate or commodities the diversification benefits can be even greater. Equity Value is a market-based measure of the Equity Value of a firm. It is also called Diluted Earnings Per Share or Earnings per share (EPS). **End Summary** Topics: Equity Trading]]> Equity Account]]> Equities]]> Equity]]> Brokerage Firm]]> Equity Planning]]> Stocks]]> Shares]]> Stock Markets]]> ]]> About the Author: ]]> Investment Planner and Relationship Manager for a leading Brokerage Firm in India.To read more about Equities in detail click here .

Investing in Stock Markets

Tue, 02 Jun 2009 00:00:00 -0400

A stock market is a public market for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. Typically a Stock Market exchange involves a potential buyer bidding a specific price for a stock and a potential seller asking a specific price for the stock. (Buying or selling at market means you will accept any ask price or bid price for the stock, respectively.) When the bid and ask prices match, a sale takes place on a first come first served basis if there are multiple bidders or askers at a given price. The stock market is one of the most important sources for companies to raise money. This allows businesses to be publicly traded, or raise additional capital for expansion by selling shares of ownership of the company in a public market. The liquidity that an exchange provides affords investors the ability to quickly and easily sell securities. When you Invest in Stock Markets it is important that you conduct a thorough Stock Market Analysis on the options available, the classes and assets that you would want to invest on. **End Summary** Topics: Stock Markets]]> Stock Market Analysis]]> Invest in Stock Markets]]> Stocks]]> Equities]]> Equity Trading]]> Equity Research]]> Equity]]> Equities]]> ]]> About the Author: ]]> Investment Planner and Relationship Manager for a leading Brokerage Firm in India. To read more about Stock Markets in detail click here .

Equities Research, Planning & Investments.

Thu, 07 May 2009 00:00:00 -0400

Equities are defined as claims that enable a person holding a share to hold a ownership or proportionate value of an organization. A person holding such an ownership in the company does not enjoy the highest claim on the company's earnings. Instead, an equity holder's claim is subordinated to creditor's claims, and the equity holder will only enjoy distributions from earnings after these higher priority claims are satisfied. It can also be described as an ownership in any asset after all debts related to that particular asset is paid off. Equities relate differently for different fields. In the context of real estate, the difference between the current market value of the property and the amount the owner still owes on the mortgage. It is the amount that the owner would receive after selling a property and paying off the mortgage. In terms of investment strategies, equity (stocks) is one of the principal asset classes. The other two are fixed-income (bonds) and cash/cash-equivalents. These are used in asset allocation planning to structure a desired risk and return profile for an investor's portfolio. Property markets and the stock markets are always under scrutiny by an average investor. **End Summary** Topics: Equity Trading]]> Equity Account]]> Equities]]> Equity]]> Brokerage]]>]]> About the Author: ]]> Investment Planner and Relationship Manager for a leading Brokerage Firm in India. To read more about Equities in detail click here here .